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Equity release calculator

  • See how much you could release
  • ​Quick, easy and secure
  • We'll explain the benefits, risks and costs of equity release
Calculate now

Equity release benefits

All our equity release advice relates to Key lifetime mortgages only. Your specialist equity release adviser will explain:

  • You can unlock cash from your home, tax-free, to help meet your needs in later life
  • You’ll always retain full ownership of your home and can stay in it for as long as you wish with a Key lifetime mortgage
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth with a Key lifetime mortgage
  • You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

Equity release drawbacks

Your equity release adviser will also outline the following important things to think about:

  • A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly

  • Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits

  • Equity release may leave you with limited or no property equity remaining

  • Equity release will reduce your financial options in the future

  • A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply

Trustpilot
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What is an equity release calculator?

Our equity release calculator will give you an idea of how much money you could release with Key's equity release. To get your personalised results, you'll just need to tell us the basic details about you and your property, and we'll be able to get your estimate to you in no time. From there, you can decide if equity release could be right for you.

How to use our free equity release calculator in 3 easy steps

  1. Fill out basic details about yourself and your property

  2. Press the calculate button

  3. See your personalised equity release quote
     

If you're unsure about using our equity release calculator, contact our team directly or request a callback to discuss your equity release options.

Your equity release calculation explained

Your personalised equity release estimate is based on the information you provide us with in our equity release calculator. Your estimate will include:

  • The maximum amount you could release tax-free

  • An optional property eligibility assessment to help you establish if your property may be eligible for equity release

  • The chance to arrange a no-obligation consultation with one of our expert advisers to help understand your options

  • Info on other options, what costs you may have, and the flexible features of Key's equity release plans

The amount you could release is dependent on your personal circumstances and is subject to an independent survey of your property.

You'll also be able to download your estimate as a PDF document so that you can take the time to read through your equity release calculation.


Calculate now

ⓘ What's in this guide?

At Key, we understand equity release is a complex product with lasting effects and it might not be right for everybody. Our free equity release calculator helps you find out how much you could release, while our guide below explains the ins and outs including:

  1. Do I qualify for equity release?
  2. What are the different equity release plans at Key?
  3. How much equity could I release from my property
  4. What is the cost of equity release?
  5. What interest rates are available for equity release?
  6. How does compound interest work?
  7. How can I reduce the cost of my equity release?
  8. How could a drawdown lifetime mortgage reduce my cost of borrowing?
  9. Is equity release right for you?
  10. What can I use equity release for?
  11. How long does it take to release equity from my home?
  12. What are the next steps for releasing equity from my home?

Do I qualify for equity release?

To qualify for an equity release plan, you must meet our eligibility criteria.

To be eligible:

  • You must be aged 55 or over
  • You must own a property in the UK that is your main residence
  • Your property must meet a minimum valuation of £70,000 and be in reasonable condition

Even if you meet these requirements, it’s important to remember that you can’t release equity without first taking advice from a qualified equity release adviser. This is a regulatory requirement.

Get in touch with our expert advisers today to find out if you're eligible. Alternatively, look via the eligibility checker on our equity release calculator results page.

Calculate now

 
ⓘ Did you know...

If you're not eligible, why not try our later life mortgage finder? It may be that we can still help you take control of your later life finances with another product.

What are the different equity release plans at Key?

Key offers lifetime mortgages only, which is a loan secured against your home. With a lifetime mortgage, you could release some of the tax-free funds locked in the value of your home. We offer two different options of lifetime mortgage plans:

With a lump sum lifetime mortgage you could release tax-free funds from your home as a single amount.

✓ Lower interest rates
Lump sum lifetime mortgages sometimes come with a lower rate of interest compared to a drawdown lifetime mortgage, which can help reduce your total cost of borrowing.

✓ Interest rates don’t change
When you release the funds as a single lump sum, the money released is subject to the fixed interest rate at the time

ⓘ May be more expensive
As compound interest will be rolled up on the money you’ve released, you will end up owing more if you take all your available cash in one go. 

ⓘ Limited ability to release further funds
With a lump sum lifetime mortgage, you can’t release further funds unless you apply for a further advance. This is subject to the lender’s criteria, your age and your property’s value at the time of application. This also requires advice and is subject to fees.

A drawdown lifetime mortgage allows you to take an initial lump sum followed by further amounts as needed in the future.

✓ Release funds when needed
A drawdown lifetime mortgage offers more freedom than a lump sum plan, allowing you to release money when you need it.

✓ Save on interest
A drawdown lifetime mortgage also allows you to potentially save a considerable amount in interest over the lifetime of your plan, as the interest only accrues on the money you’ve released

ⓘ Your drawdown facility isn't guaranteed
Your lender may have the option to withdraw your drawdown facility.

ⓘ You don't know what interest rates will be like in the future
If you choose to take a drawdown, the funds you release will be subject to the prevailing, fixed interest rate at the time

Benefits of all Key lifetime mortgage's

All our plans meet the Equity Release Council standards, which offers various protections as standard. It's important to remember this is a complex product with a lifetime commitment so may not be right for everybody - check the benefits and drawbacks before going ahead.

  • You have the right to remain in your home for as long as you choose

  • You have the freedom to move to another property without an early repayment charge (subject to criteria)

  • You'll never owe more than the value of your home with the no negative equity guarantee

  • Flexible features available including downsizing protection and partial capital repayments

It’s important to remember that a lifetime mortgage may leave you with limited or no property equity remaining and it’ll reduce your financial options in the future.
 

Why choose Key?

  • Key is proudly rated ‘Excellent’ on Trustpilot with over 17,000 reviews

  • Our commitment to help our customers enjoy a better retirement has seen us win a host of awards

  • Key was named the Best Equity Release Broker by Mortgage Strategy Awards in 2023

  • We also received the Best Later Life Broker by Financial Reporter in 2022


ⓘ This is a lifetime commitment - check the benefits and drawbacks before going ahead. For more information about equity release, download our free equity release guide now. Our equity release advisers can explain all of this if you're unsure, so book a free callback.
 

ⓘ Did you know...

There's another type of equity release which we don't offer called home reversion. You sell all or part of your home to a reversion company for less than market value in exchange for a cash lump sum. Find out more about your equity release options.



Back to "What's in this guide?"

How much equity could I release from my property?

If you meet minimum eligibility requirements, we will assess your application and give you a more accurate idea of the equity you could release. In Q1 2023, Key customers had access to an average total facility of £79,981.

ⓘ Did you know...

The amount you can release will be based on the youngest applicant's age and your property value and varies between people and properties. Use our UK equity release calculator above to get a quick estimate.

How is my equity release estimate calculated?

Our equity release calculator uses two main factors to quickly work out how much tax-free cash you could release:

  • Property value: The minimum property value to be eligible for a lifetime mortgage is £70,000 - a higher property value may result in a higher equity release calculation

  • Age: All applicants must be aged 55 or over to qualify and you can usually release more equity the older you are - if you're applying as a couple, the amount of equity you could release will be based on the youngest applicant

ⓘ Property value is based on a range of factors such as size, location and condition. If you're not sure of your property value when using our equity release calculator, check what similar properties are going for in your area on websites like Rightmove. It's important to note this is an estimate. If you go ahead with equity release, the total amount available will be subject to an independent property survey.
 

Is there a minimum amount I could release?

You'll need to release a minimum of £10,000. While it's helpful to know the maximum amount you could release, our equity release advisers can help you borrow only as much as you need. Borrowing less will reduce the interest you pay and could help you access a lower interest rate. Here's our minimum borrowing limits:

 

Lump sum lifetime mortgage

Drawdown lifetime mortgage

Minimum initial loan

£10,000

£10,000

Minimum drawdown

N/A

£2,000*

*or the full balance if this is less than £2,000

No, the funds that you release are entirely tax-free.

However, your tax position could be affected.

Your circumstances may change over time
Our online equity release calculator will give you an estimate of how much you could release right now. Over time your situation could change, and you may be able to release more equity later depending on your circumstances.

If you choose a drawdown lifetime mortgage, you may be able to release portions of an agreed overall amount as you need, subject to minimum drawdown amounts. 

For additional drawdowns, the funder will calculate a rate of interest for each amount you release. The funder's rates for any new borrowing may be different to your existing plan and will be set at the prevailing rate at that time.

Alternatively, you might be able to release more funds if you didn't borrow the full amount available initially.

You could also access more money if your home has increased in value over time or if your health circumstances have changed. Read our guide to changing your equity release plan for more information.

Back to "What's in this guide?"

What is the cost of equity release?

The total cost of borrowing is determined by the amount borrowed, interest rate and length of loan together with any fees incurred.

You may have a series of setup fees if you go ahead with equity release, depending on the product you choose. The money that you release could be used to pay for some of these fees.

Ultimately, the initial costs you pay in order to access your equity release will depend on your provider, adviser fees and the recommended product.

When you’re working out the setup fees of equity release, there are four fees that you’ll need to budget for. Here, we guide you through what these different fees involve. 

These include:

Surveyor's valuation

  • If applicable, this is usually paid with the application

Solicitor's fees

  • This is typically paid when you receive your tax-free funds on completion

Lender's arrangement fee

  • If applicable, this is usually paid on completion, and you receive your tax-free funds

Our advice fee

  • Our fixed advice fee of £899 is only payable on completion
There's usually nothing to repay on your lifetime mortgage until you or the last remaining applicant die or move into long-term care. However, you may choose to repay some or all of the monthly interest that accrues over the life of the mortgage.

This is something to consider if you have the financial means as it can reduce the amount that you owe in the end. Otherwise, the interest accrues and is added to the loan in the form of compound interest.

Cashback
We offer cashback on some Key equity release plans providing you're eligible and it's right for you. This is primarily used to reduce the loan amount which could help reduce the overall cost of borrowing.

Partial repayments
You could be able to make voluntary partial repayments between 10-12% each year on the initial amount you borrow without incurring any early repayment charges. These repayments can reduce the long-term cost of your lifetime mortgage as compound interest will accrue on a smaller loan amount.

Early repayment charges
You may decide you want or need to repay part or your full lifetime mortgage early, which may incur an early repayment charge.

All of our lifetime mortgage's include fixed early repayment charges so you know what to expect before deciding if you want to repay early. Plus, if you want to downsize, you may be able to do so without facing an early repayment charge, subject to criteria. It is worth noting that a lifetime mortgage is a lifetime commitment and is not designed to be repaid early.

Back to "What's in this guide?"

What interest rates are available for equity release?

Lifetime mortgage interest rates vary depending on the plan you take out and your circumstances.

With a lifetime mortgage, the interest accrues, then rolls up and is added to the loan. This is also known as compound interest. The interest rate you get will be specific to your circumstances and is fixed for the life of the loan.

Representative example

5.98% AER

Lowest rate with Key

6.96% AER

Rate most Key customers received, or less

7.26% APR

Overall cost for comparison

All rates correct as of 3rd December 2023. This is based on customer data from the last 60 days, apart from Key's lowest rate. Interest rate received and plan features are subject to eligibility. Ask for a personal illustration.

Interest rates explained

  • AER stands for Annual Equivalent Rate. It shows what the interest rate would be if interest was paid and compounded each year. 

  • APR stands for Annual Percentage Rate. It's the cost you pay each year to borrow money, including fees, expressed as a percentage. 


Our equity release calculator will give you an illustrative rate based on the details you put in.


Calculate now

Back to "What's in this guide?"

How does compound interest work?

Unless you choose to do so, there are no repayments to make on a lifetime mortgage until the plan comes to an end. As a result, you pay interest not only on the loan itself, but also on the interest that’s already been added to the loan. But there are ways you could reduce the total cost of borrowing of your lifetime mortgage which we outline in this guide. 

Whether interest is added to your lifetime mortgage on a monthly or annual basis is dependent on your plan. But during that first period, the interest is charged and added to the original loan amount - the sum of tax-free cash you unlock from your home’s value. 

  • In the period following, interest is then calculated and charged on what you owe (the original loan amount plus interest), not the amount you initially borrowed
  • This new, larger amount of interest is then added to your loan, and this cycle continues until the plan comes to an end
  • This means a larger amount of interest is added to your lifetime mortgage each period
  • The interest rate at the beginning of your plan determines how quickly the interest grows which will impact the total cost of borrowing over the term of the loan

An example of how compound interest accrues over 15 years

Product Balance at the start of the year MER¹ Interest added² Balance at the end of the year³
Year 1 £81,703 6.74% £5,681 £87,384
Year 2 £87,384 6.74% £6,075 £93,459
Year 3 £93,459 6.74% £6,497 £99,956
Year 15⁴ £209,360 6.74% £14,555 £223,915

This example is for illustrative purposes only and uses the average release amount of £81,703 and monthly equivalent rate of 6.74% - Key Market Monitor Q1, 2023
¹ With all Key lifetime mortgages, the interest rate is fixed throughout the life of the plan
² Interest is charged on the balance as at the start of the year, not the original amount
³ The balance at the end of the year including compound interest
⁴ This cycle continues throughout the life of the plan


Back to "What's in this guide?"

How can I reduce the cost of my equity release?

All of Key’s lifetime mortgages come with options which could help to reduce the total cost of the borrowing if that’s important to you; for instance, if you wish to leave a larger inheritance to your loved ones.

How making repayments can help you manage your total cost of borrowing

Even though there are typically no monthly repayments to make with a lifetime mortgage, all our plans come with the option to make ad-hoc or regular repayments to help reduce your total cost of borrowing. 

Even if you’re only able to make small repayments, it will help reduce the amount of interest you pay over the lifetime of your loan.

ⓘ Illustrative example

In this example, if you were to borrow £81,703, with a fixed 6.74% MER interest rate (monthly equivalent rate), and make no repayments at all, after 15 years, your total cost of borrowing would be £223,915. However, by making a monthly £250 repayment, after 15 years, you’d owe £146,440 - with a total cost of borrowing, including repayments, of £191,440. This means, by repaying £250 a month, you, and your beneficiaries, could benefit from a £32,475 net interest saving.

Initial release amount of £81,703. Plan subject to a fixed interest rate of 6.74% MER. Interest and payments shown over a 15 year period. Axis shows the total cost of borrowing. This example is for illustrative purposes only. - Key Market Monitor Q1, 2023

Remortgage to another equity release plan in the future

If interest rates reduce in the future, you may have the option to remortgage your current plan to secure a lower rate. It's important to remember that an early repayment charge (ERC) may be payable if you choose to remortgage your equity release plan.
 

Consider a drawdown plan

With a drawdown lifetime mortgage, you only take out the money you need when you need it. This can help reduce your total cost of borrowing, as interest is only charged on the money you release, rather than the full amount available. More on lump sum vs drawdown lifetime mortgage.
 

Back to "What's in this guide?"

How could a drawdown lifetime mortgage reduce my cost of borrowing?

As you only pay interest on the funds you release, you could potentially save thousands over the course of your plan with a drawdown lifetime mortgage. Here's an example to help you understand how this could work for you. 

ⓘ Illustrative example

This example is for illustrative purposes only and shows there are two customers who both have access to a lifetime mortgage facility of £81,703 at an interest rate of 6.74% (future drawdowns will be charged at the prevailing interest rate) - Key Market Monitor Q1, 2023.

Customer A

Customer A decides to take all their cash in one go through a lump sum lifetime mortgage, so interest is charged on the full release amount from day one.



(Orange bar)

Customer B

Customer B, meanwhile, takes an initial loan of £51,703 to meet their immediate requirements, so interest is only charged on this lower release amount. Customer B then decides to make two further £15,000 drawdowns over time, taking their total release amount to £81,703.

(Blue bar)

Customer B saves £32,851 in interest charges
While Customer B still borrows the same £81,703 over 15 years, because they take their money in stages, their total cost of borrowing is lower as interest is only charged when they release their funds. As a result, Customer B saves almost £32,851 in interest charges over the total life of their plan. This example is over 15 years but it could be longer or shorter. Axis shows the total cost of borrowing.

Back to "What's in this guide?

Is equity release right for you?

Equity release helps thousands of homeowners across the UK take control of their finances, so that they can live the later life that they deserve. It's not right for everyone though, so we've given some useful information on your other options to help reach your later life finance goals. 

Explore how Key could help you put the life in later life – request your free, comprehensive guide today.

Download now

Your other options

Before deciding on equity release, it's important you're aware of some of your other later life finance options.

Here are some more alternatives that may be more suitable for you:

Equity release costs

Knowing the costs associated with equity release and how to help manage them is important.

Here are some helpful guides to give you a better understanding:

ⓘ There are other later life finance options we don't offer which may be more suitable for you:

  • Home reversion

  • Downsizing

  • Unsecured lending

  • Using existing assets

  • Support from friends or family


Back to "What's in this guide?

Equity release could affect your entitlement to means-tested benefits such as Pension Credit and Council Tax Reduction. It doesn't affect benefits that aren't means-tested, such as Winter Fuel Payment or free prescriptions.

We can discuss this topic with you during the application process, helping you make an informed decision about whether equity release is right for you. Alternatively, read our guide for more details – Will equity release affect your eligibility for benefits?

What can I use equity release for?

As a tax-free payment, you can use your equity release funds in a variety of ways. It's a requirement to state what this will be used for in advance, so you can be sure you are borrowing the right amount.

Key has helped over one million people decide if equity release is right for them, and continue to help more enjoy a better retirement. Our customer stories provide examples of how our honest advice has helped thousands of people enjoy their later lives.

You need to consider what it will be used for before you get the application process underway. This will ensure that you're borrowing the right amount. The money you unlock is tax-free and can be spent in a variety of ways, such as:

"Our customers often use equity release to clear existing debts, such as a mortgage, credit cards or loans. It’s also used to financially support loved ones when they need it most, for example, contributing towards a child or grandchild’s first house deposit, as well as home improvements, with a large portion of our customers using some of their tax-free cash to make their property more enjoyable to live in or more accessible in later life." 

- Rachel East, Divisional Head of Advice

ⓘ You should always think carefully before securing a loan against your home to repay existing debt.

ⓘ Did you know...

Over the years, our customers have benefitted from expert advice, experience and professionalism from Key. We've been rated 'Excellent' on Trustpilot and you can check out the great things our customers have to say about our equity release plans.

Customer stories

All members of Key I spoke to were helpful and friendly, nothing was too much trouble for them

Ms Kane

"I recommend Key to anyone looking to take out equity from their home. My request went through very quickly, I already have my money and am starting to do the projects I wanted the money for. I am very pleased with the outcome and Key's staff."

I must say that Key were very helpful and understanding through the whole process

Mr Griggs

"We were put under no pressure to complete and constantly told that we could back out at any point prior to completion. They fully explained all of the Implications and costs of what we were thinking of doing. We had our own adviser who was patient with us and explained everything to us. So if you are thinking about equity release I would recommend Key."

We used Key to provide funds to upgrade parts of our house


Mr Dennison

"The Company were professional, supportive and explained the process very clearly. The meetings with Key which were conducted on Zoom were informative and friendly and at no time did we feel pressured. It was a positive experience. We would recommend Key to anybody considering equity release."
Back to "What's in this guide?"

How long does it take to release equity from my home?

We make releasing equity from your home as quick as possible. While the time frame is not guaranteed as each application is different, the average time for Key equity release plans to be processed and completed in 2022 was typically within 6 weeks.

Our applications generally follow this process:

Try our free calculator

You find out if you could be eligible using our free, no-obligation equity release calculator

Speak to an adviser

You then speak to one of our qualified equity release advisers on a date and time that works for you using our callback service and establish whether equity release is right for you.

Receive money

Following a successful application you will then discuss the legalities with your independently appointed solicitor.
After this has been completed you'll receive your money to spend in a variety of ways
Back to "What's in this guide?"

What are the next steps for releasing equity from my home?

If you've used our equity release lifetime mortgage calculator and are interested in continuing, it’s quick and easy to start your application.

Your specialist adviser will take you through:

Get professional advice

Why you need to get professional equity release advice before releasing tax-free funds from your home. You can read information on making sure it’s right for you on our website

Product range

Our product range. Key Equity Release offer lifetime mortgages only, which is a loan secured against your home. It’s important to note equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits

Added protection

How you're protected. No matter which type you choose, all our plans meet the Equity Release Council standards and come with several protections. That includes the no negative equity guarantee, which means you’ll never owe more than your home’s value

Our qualified equity release advisers are experienced in providing the right advice, tailored to suit your needs. You can get in touch by giving us a call on 0808 252 9170.

Alternatively, you can get started online by seeing how much equity you could release with our free, easy-to-use calculator.
 



Back to "What's in this guide?"

Compare Key's equity release plans

Our home equity release calculator for UK customers allows you to compare various details. This includes the minimum and maximum equity release amounts and the equity that could remain in your home at the end of the loan.

We understand equity release can feel complicated and we want to help our customers understand their options. Our qualified equity release advisers can also help you compare features to personalise your plan based on what matters most to you.

If you have any further questions, feel free to contact our team today.

We’re here to help you via email or phone on 0808 252 9170. Lines are open Monday–Thursday from 9am–8:00pm, Friday 9am-5:30pm and Saturday from 9am–5pm.

Calculate now

Read our equity release articles

Equity release isn't something you should rush into. Read our RetireWise articles to learn more about how it works and whether it's right for you.

How does equity release work?

 

Continue reading

How long does equity release take?

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Is equity release safe?

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Page last updated: Friday 22 September 2023